If we were to pay everyone exactly the same income
A) there would be a large amount of economic growth.
B) there would be no incentive to invest in human capital.
C) more people would seek an education.
D) productivity would increase.
Answer: B
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An agreement among countries to adopt a common currency is called a
A) central bank consolidation. B) currency union. C) monetary compact. D) common banking treaty.
As the income for bus consumers increased, the wages of bus drivers increased simultaneously. How does this affect the market for bus rides (inferior good)?
a. The demand curve will shift to the left; the supply curve will shift to the left b. The demand curve will shift to the left; the supply curve will shift to the right c. The demand curve will shift to the right; the supply curve will shift to the left d. The demand curve will shift to the right; the supply curve will shift to the right
An import quota does which of the following? a. decreases the price of the imported goods to consumers b. increases the price of the domestic goods to consumers c. increases the domestic quantity demanded
d. both (a) and (c)
If Y = $500 billion, autonomous consumption = $400 billion, and the marginal propensity to save = 0.20, then saving will equal
a. –$300 billion b. $300 billion c. $0 d. $80 billion e. –$80 billion